Court allows Amsa to join ICT/Kumba case

[miningmx.com] — THE application by ArcelorMittal SA to join Kumba Iron Ore in a court bid against Imperial Crown Trading has been granted, the steelmaker said on Monday.

“The High Court has recognised that ArcelorMittal has a direct and substantial interest in the proceedings and that it is both necessary and convenient that it be joined as a party,” said Themba Hlengani, ArcelorMittal’s spokesperson.

ArcelorMittal filed an application with the court last week, seeking to join Kumba as a co-applicant in order to receive “substantive relief” from the terms of Kumba’s converted mining right over Sishen mine. The converted right compels Kumba to sell its iron ore at market-related prices.

Kumba commenced court proceedings to overturn the state’s decision to grant a prospecting right over a 21.4% share of Sishen to Imperial Crown Trading.

ArcelorMittal previously owned the 21.4% stake, but lost it after it failed to convert its old order mining right into a new order mining right.

Hlengani said ArcelorMittal’s acquisition of Imperial Crown Trading would still be considered. He added that ArcelorMittal’s black economic empowerment deal with the Ayigobi consortium, made up partly of directors in Imperial Crown, would also remain under consideration.